Developers behind a major new gas field off Teesside’s coast say they are making “excellent progress” with the scheme.

Gas from the recently-discovered Pegasus West field will be landed on Teesside, using existing pipelines - creating hundreds of direct and supply chain jobs.

Now the Centrica-operated project has moved a step closer, after a major partner, Third Energy Offshore Ltd, successfully increased its stake.

Third Energy has bought Atlantic Petroleum UK’s 10% interest in the project in a £16.5m deal, giving it a 45% share to Centrica’s 55%.

Rasik Valand chief executive of Third Energy, said: “Closing the Pegasus acquisition from Atlantic is another significant milestone for Third Energy as we move our business forward on all fronts.

“We are confident about the development of the Greater Pegasus area, underscored by our desire to make this acquisition.

“By increasing our equity in one of the most exciting North Sea gas discoveries, we are delivering on our strategy to create a successful British gas business, offshore and onshore.

“With our partners Centrica, we are making excellent progress on the development options for commercialising the existing discoveries and plans for further appraisal of the greater Pegasus area.”

The Pegasus West well, which lies around 130 miles off the coast of Teesside, was drilled and tested in late 2014 and bosses say it could be the first step towards a “major new gathering hub” in the Southern North Sea.

An exact figure for the number of jobs Pegasus could create has not been announced - but the field is thought to be around a tenth the size of nearby Cygnus, a development hub that supports 1,000 direct jobs and 3,000 supply chain at peak production.